Asian market preview 14/02/2008

Happy Valentine's day to all readers out there.. May you all get some love today!!

US markets extend the rally to 3 straight days overnight after retail sales unexpectedly rose. The rise in retail sales defied forecasts for a drop in purchases and spurred optimism that earnings growth outside the banking industry will withstand an economic slowdown sparked by the collapse in subprime mortgage market. Increased demands in Applied Materials Inc., the largest maker of semiconductor-production machines spurred a technology rally. The report that Yahoo Inc. is in talks with News Corp.'s internet assets to thwart off Microsoft's takeover bid also helped Nasdaq to gain the most since November. The rise in crude oil prices helped energy shares such as Exxon Mobil rose overnight. Dow rose 178.83 pts or 1.45% to 12552.24, S&P500 gained 18.35 pts or 1.36% to 1367.21 while Nasdaq surged 53.89 pts or 2.32% to 2373.93. President George W. Bush have also signed into law the $168 billion stimulus package designed to avoid recession.

Asian markets may open higher again and hopefully this rally would last in some of the Asian markets. For the past 2 days, Asian markets opened higher only to lose most of it during the daytrade caused by investors doing daytrading, selling fast when they're in the money with fear of economic uncertainties. Hopefully, with better-than-expected US' retail figures, the gains in Asian markets will stick and make the market stronger. Crude oil rose to around $93.30ish per barrel, gold lose some grounds to $905ish and JPY was recently traded around 108.20ish. Nikkei futures settled at 13315 in CME overnight, compared to the close of 13155 here yesterday.

Kospi may open higher around 210ish today after losing the gains yesterday and ended up on the negative side. Hopefully, with 3 straight days of gains in Wall St, investors in South Korea would be more optimistic and start to invest more of their money into the market to help the Kospi gain some of its losses for this year. Market volatilities may be high again today should the investors still playing into daytrades.

Hangseng may open higher around 23500ish today and may even try the 24000 level should the optimism in investors are that huge following the retail figures in the US. It is said that Bernanke may have to cut interest rate again after the cuts last month failed to lower borrowing costs for many companies and households. Bernanke will give his testimony tonight regarding the US' economy. Market volatilities may be high again today if the market rose too high early in the morning.